A PPB ANCILLARY SERVICES
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary purpose of ancillary services offered by banks?
Ancillary services are non-core banking services that supplement the main banking functions, helping banks generate fee-based income and provide comprehensive financial solutions to customers.
What is the meaning of the term 'ancillary services' in banking?
Non-core, fee-based services supplementing primary banking activities.
Which regulatory body governs the provision of insurance products by banks in India?
The Insurance Regulatory and Development Authority of India (IRDAI) regulates insurance products, while the RBI governs the bancassurance arrangements between banks and insurance companies.
What is the full form of NACH and what purpose does it serve?
National Automated Clearing House; facilitates bulk electronic transactions.
What is bancassurance?
Bancassurance is a distribution arrangement where a bank sells insurance products of an insurance company to its customers, acting as a corporate agent and earning commission income.
What is ECS and how does it differ from NACH?
Electronic Clearing Service; NACH is the upgraded, centralised version of ECS.
How many life insurance companies can a bank tie up with under the RBI bancassurance guidelines?
As per RBI guidelines, a bank can tie up with a maximum of one life insurer, one general insurer, and one standalone health insurer for distributing insurance products.
What is a Payment Order issued by a bank?
A bank's written order to pay a specified sum to a named payee.
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